‘Don’t pile on the tax’ plea to city council

Oct 17 2007 by Bill Gleeson, Liverpool Daily Post

Transport Secretary Alistair Darling arrives in Liverpool (158)

LOCAL business leaders are urging Liverpool City Council not to use new tax raising powers that would allow the local authority to increase business rates.

Proposals contained in last week’s Pre-Budget Statement by Chancellor of the Exchequer Alistair Darling, (pictured), would restore powers to raise business rates that were taken away from local authorities by the last Conservative government.

It has already become clear that Liverpool City Council is considering using the new powers to help pay for a new tram system.

Frank McKenna, chairman of city centre business lobby group Downtown Liverpool in Business, said: “This is a retrograde step. It’s another opportunity for local government to raise stealth taxes on business.”

Mr McKenna doubts safeguards designed to ensure local authorities seek the approval of firms through a ballot before raising taxes will work. He said: “That doesn’t mean a thing to businesses that have already been clobbered by stealth taxes over the years.

“This Government has been encouraging business to set up in city centres as they see them as the places that drive economic growth.

“But with congestion charging, the extra taxes to pay for Business Improvement Districts and now a supplementary business rate, I can envisage a time when we have all this wonderful regeneration in our city centre but we see businesses basing themselves in the outskirts because its cheaper.

It’s muddled thinking and they need consistency of approach.

“We all know the council is facing cutbacks and I think they will find it too tempting.”

Jack Stopforth, chief executive of Liverpool Chamber of Commerce, said: “We would need to be sure money raised was ring-fenced to be used in a way that will help business.

“As with Business Improvement Districts, we would want locally-appointed boards to be given control. It’s the only way we could be persuaded.”

billgleeson@dailypost.co.uk